MANILA, Oct 19 (Reuters): The Philippines' PXP Energy Corp said on Monday it was in negotiations with China National Offshore Oil Corp (CNOOC) for a joint oil and gas development in the South China Sea after President Rodrigo Duterte lifted a six-year moratorium on drilling activities in the disputed area.
PXP said the Philippines was discussing a memorandum of understanding with Beijing at the moment on the joint development.
In a market disclosure, PXP said on Monday (Oct 19) the talks were being handled by Forum (GSEC 101) Ltd, a subsidiary of its unit Forum Energy Ltd, but the parties had yet to agree on any disclosable definitive agreement.
In what it described as a unilateral decision, Manila has lifted a six-year-old moratorium on oil and gas exploration in the disputed waters believed to be rich in energy and marine resources, a move Beijing did not oppose.
The administration of former president Benigno Aquino had had imposed the moratorium in 2014 while awaiting a ruling in a case by the Permanent Court of Arbitration in the Hague, which in 2016 invalidated China's claim to sovereignty over most of the South China Sea.
Cusi said the decision to lift the moratorium was arrived at "in good faith and with full regard of the ongoing negotiations between the Philippines and China, and Forum Ltd and the China National Offshore Corp" (CNOOC).
Other local and foreign companies, including Philippine oil and shipping conglomerate Udenna Group, are eager to explore for oil and gas in the West Philippine Sea following the lifting of the moratorium by President Duterte on Thursday (Oct 15), according to Energy Secretary Alfonso Cusi as reported by The Philippine Star.
In all, the lifting of the moratorium bodes well for the country’s economy and energy supply needs, Cusi said.
“What need is the stimulus for our economy now,” Cusi said. - Reuters
PXP said the Philippines was discussing a memorandum of understanding with Beijing at the moment on the joint development.
In a market disclosure, PXP said on Monday (Oct 19) the talks were being handled by Forum (GSEC 101) Ltd, a subsidiary of its unit Forum Energy Ltd, but the parties had yet to agree on any disclosable definitive agreement.
In what it described as a unilateral decision, Manila has lifted a six-year-old moratorium on oil and gas exploration in the disputed waters believed to be rich in energy and marine resources, a move Beijing did not oppose.
The administration of former president Benigno Aquino had had imposed the moratorium in 2014 while awaiting a ruling in a case by the Permanent Court of Arbitration in the Hague, which in 2016 invalidated China's claim to sovereignty over most of the South China Sea.
Cusi said the decision to lift the moratorium was arrived at "in good faith and with full regard of the ongoing negotiations between the Philippines and China, and Forum Ltd and the China National Offshore Corp" (CNOOC).
Other local and foreign companies, including Philippine oil and shipping conglomerate Udenna Group, are eager to explore for oil and gas in the West Philippine Sea following the lifting of the moratorium by President Duterte on Thursday (Oct 15), according to Energy Secretary Alfonso Cusi as reported by The Philippine Star.
In all, the lifting of the moratorium bodes well for the country’s economy and energy supply needs, Cusi said.
“What need is the stimulus for our economy now,” Cusi said. - Reuters
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